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Reckon/Quickbooks/MYOB – How to enter Transfers of money to pay business expenses

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Reckon/Quickbooks/MYOB – How to enter Transfers of money to pay business expenses

Reckon/Quickbooks/MYOB – How to enter Transfers of money to pay business expenses

A regular client emailed to check they had entered transaction correctly – to enter Transfers of money to pay business expenses in this case, to cover a PAYG payment to the Australian Tax Office (ATO) – they emailed –

I am a little unsure about an entry I have made and wonder if you can tell me if I have done correctly.

I had a PAYG for Chris and at the time there wasn’t quite enough funds in Bus. a/c so I transferred money from personal a/c to cover.

For MYOB entry I put to:        Receive Money

Payer:                                       C and  personal

Amount:                                   $ —– 

Method:                                    Other –then put note in details.

Memo:                                      Funds transfer from Pers. to Bus a/c

Then I credited  

21410- PAYG Tax                  Which is where the payment will come from

Is this correct or should I have put to something else?

Kind regards

L

Answer –

Good effort – nearly right!

There are 2 transactions to do, just to be clear (and a third one to pay it back later) –

1. You lend money to Business Bank account –

– Receive Money

  • Top account is Bus bank account, then date, $ etc
  • Memo – eg “C&L loan to Bus bank”
  • Lower account is YOUR Personal Loan account – either a number 2 Liability (Long Term), or Equity – but number 2 and set as a CREDIT CARD allows you to use in other Transactions like a bank account at the top account

2. The Business PAYS the PAYG –

– Spend Money

  • Top account is Bus bank account, then date, $ etc
  • Memo – eg “Pay ATO PAYG” – add name if specifically matches an employee amount
  • Lower account is the 2-1410 PAYG Tax account

3. The Business pays you back – if this occurs later (or can just leave as is and business always owes you this later)

– Spend Money

  • Top account is Bus bank account, then date, $ etc
  • Memo – eg “Pay ATO PAYG” – add name if specifically matches an employee amount
  • Lower account is the 2 Liability Personal Loan Account

Hope that is clear!

Need help? Not sure? Call for FREE 30min Advice / Strategy session today!

Call 0407 361 596 Aust and also get FREE “Avoid these GST mistakes” – There’s 18 that the Tax Office see regularly – Get them right!

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Author: accountkeepingplus

Administration, bookkeeping and compliance for small business, and Self-Managed Super Funds (SMSF) Training, trouble-shooting, or we can do the books and payroll for you! Self Managed Superannuation Fund Service Provider, Free support MYOB Certified Consultant, Reckon/QuickBooks Professional Partner.

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